UNIT 4 LIFE INSURANCE FINA 4352 EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
Under a universal life insurance policy edcwith the Option B death benefit (also
known as the increasing death benefit option)
the death benefit is the face amount of the policy plus the cash value.
The ________________________ method considers the time value of money in
measuring the cost of life insurance.
interest-adjusted
single premium life insurance policy would be classified as a
modified endowment contract
Why is universal life insurance used
A universal life insurance policy would help Carol solve her permanent life insurance
needs and also give her the flexibility to vary the premiums and death benefit in the
future. She could also borrow against the universal life insurance policy in the future
without incurring a possible tax burden or penalty if she needed some extra funds for
her new business.
Variable universal life combines the features of
variable and universal life, by providing flexible premium payments, an adjustable death
benefit, and the ability to invest the cash value in subaccounts.
Which of the following are characteristics of a viatical settlement?
One party purchases the life insurance policy on the life of another party.
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
Under a universal life insurance policy edcwith the Option B death benefit (also
known as the increasing death benefit option)
the death benefit is the face amount of the policy plus the cash value.
The ________________________ method considers the time value of money in
measuring the cost of life insurance.
interest-adjusted
single premium life insurance policy would be classified as a
modified endowment contract
Why is universal life insurance used
A universal life insurance policy would help Carol solve her permanent life insurance
needs and also give her the flexibility to vary the premiums and death benefit in the
future. She could also borrow against the universal life insurance policy in the future
without incurring a possible tax burden or penalty if she needed some extra funds for
her new business.
Variable universal life combines the features of
variable and universal life, by providing flexible premium payments, an adjustable death
benefit, and the ability to invest the cash value in subaccounts.
Which of the following are characteristics of a viatical settlement?
One party purchases the life insurance policy on the life of another party.
